Walmart's stock rallies toward a record as earnings rose above expectations and the outlook was raised

Dow Jones11-19 20:10

MW Walmart's stock rallies toward a record as earnings rose above expectations and the outlook was raised

Shares of Walmart Inc. $(WMT)$ ran up 4% into record territory in premarket trading Tuesday, after the discount retail giant reported fiscal third-quarter earnings that beat expectations, amid broad strength across merchandise categories, and raised its full-year outlook. Net income for the quarter to Oct. 31 rose to $4.58 billion, or 57 cents a share, from $453 million, or 6 cents a share, in the same period a year ago. Excluding nonrecurring items, adjusted earnings per share of 58 cents beat the FactSet consensus of 53 cents. Total revenue grew 5.5% to $169.59 billion, above the FactSet consensus of $167.69 billion, to mark the 19th-straight quarter of top-line beats. In its Walmart U.S. business, comparable-store sales increased 5.3% to top the FactSet consensus of 3.8% growth, while the membership-based warehouse business Sam's Club saw comparable-store sales jump 7% to exceed expectations of a 4.1% rise. Looking ahead, the company raised its full-year 2024 guidance for adjusted EPS to $2.42 to $2.47 from $2.35 to $2.43, and for net sales growth to 4.8% to 5.1% from 3.75% to 4.75%. The stock has run up 60% year to date through Monday, while the Consumer Staples Select Sector SPDR ETF $(XLP)$ has gained 11.8% and the Dow Jones Industrial Average has advanced 23.6%.

-Tomi Kilgore

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November 19, 2024 07:10 ET (12:10 GMT)

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Walmart's stock rallies toward a record as earnings rose above expectations and the outlook was raised

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